The failure between Orchard Care Homes and Holly Blue Management to agree terms over a lease has seen four care homes go into administration.

The care home organisation and the landlord could not reach an agreement following 11 months’ worth of negotiations, which resulted in homes in Darlington, Rossendale, Sheffield and Chorley being placed under the management of another care home services company by the administrator.

The Sheffield councillor, Chris Peace, who is the Cabinet Member for Health and Social Care, was keen to stress that, in the short-term, this would not affect the services provided, saying: “I want to reassure residents and families that the council is working closely with Careport and assisting in whatever way we can.

“Following notification that Norton Lees Hall and Lodge has gone into administration, communication is ongoing with relatives, residents and staff at the home. Careport, the interim appointed operator, have told us that there should be no noticeable difference to residents and families in the running of the home.”

The administrator said: “Unfortunately, difficult trading conditions significantly affected the businesses. However, we are hopeful of securing going concern sales and safeguarding the long-term future of the homes for all residents.

“The homes will continue to operate while this is explored, and our primary focus is to ensure the maintenance of high quality care to residents. We will continue to work closely with all parties, including specialist care management company [Careport], to ensure residents experience no interruption to their care services.”

Despite going into administration, all staff members are to remain employed at the homes.

Seeking advice at the earliest opportunity is the key to protecting your business and assets from the threat of administration. To find out more, contact Gibson Hewitt today.